studentaid

Feds Need More Power to Hold Colleges Accountable, Official Says

The massive federal law governing student aid needs to be simplified, allow more room for innovation, and hold colleges more accountable for student outcomes, a top U.S. Department of Education official said Wednesday.

Speaking at a New America Foundation event about the reauthorization of the Higher Education Act, Under Secretary of Education Ted Mitchell said that the federal government should have more power to hold colleges and universities accountable for academic and educational problems. 

“I would love there to be more authority in the federal government to crack down on what we see as educational abuses as opposed to financial abuses or the like,” he said, citing the recently uncovered academic fraud scandal at the University of North Carolina at Chapel Hill.

Mitchell added that any increased federal regulation of colleges should be focused on student outcomes.

“I would want to make a very bright line: if we’re going to expand, by statute, federal regulatory authority to have it be about outcomes and not processes and inputs,” he said, referencing some of the criteria that accreditors use in approving institutions. 

Mitchell said he was optimistic that accountability in higher education was an issue on which there is room for consensus between Republicans and Democrats in Congress.

Another Education Department priority in reauthorizing the Higher Education Act, he said, would be simplifying what has become a “convoluted” federal student aid system.

Rewriting the law, which was last updated in 2008, should be a “pretty dramatic gardening project” to streamline existing federal student loan rules and get rid of requirements that inhibit innovation in higher education, he said.

“We have this really crazy matrix of different loan programs, different loan servicers,” he said. “If we could, in the Higher Ed Act, streamline that, that would be great.”

He said that the government should “simplify or eliminate the FAFSA form” and make better use of existing sources of information on families’ financial information in determining eligibility for federal student aid.

Mitchell also said that a new Higher Education Act should restore year-round Pell Grants and provide incentives for states to maintain spending on higher education and not pass large tuition increases on to families.

Senator Lamar Alexander of Tennessee, the Republican who is expected to chair the Senate educate committee in the next Congress, has said that deregulating higher education and simplifying the FAFSA form is a priority of his in higher education policy. He’s said he wants to “start from scratch” in rewriting the Higher Education Act, to weed out requirements that he says are burdensome and have been layered on over decades.

Representative John Kline, the Minnesota Republican who is expected to continue as chair of the House education committee, said in a video announcement Wednesday that improving the higher education system will be among his priorities in the new Congress, but did not offer any details about that plan. 

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U. of California Wants to Resume Tuition Increases

Leaders of the University of California System, for the first time in four years, are proposing tuition increases, The Los Angeles Times reported. Officials say that increases of 5 percent a year are needed to provide more funds for a variety of goals, including increasing the number of California residents that the system's campuses admit. The proposal is expected to face skepticism from Governor Jerry Brown, a Democrat, and students.

 

Obama Vows to Work With Republicans on College Costs

President Obama, after his party's losses in Tuesday's Congressional elections, said Wednesday that he would seek to find agreement with Republicans on some higher education issues.

Obama said several times during a news conference at the White House that college affordability and student loans are issues on which he was ready to work with Republicans to find common ground during the last two years of his administration.

"We’ve got some common ideas to help more young people afford college and graduate without crippling debt, so that they have the freedom to fill the good jobs of tomorrow and buy their first homes and start a family," he said.

Voters in Tuesday's election, Obama said, sent a resounding message that they want policymakers to "get stuff done" in spite of partisan differences.

"Don't worry about party affiliation," was the message voters signaled to Washington, Obama said. "Do worry about our concerns."

"Do worry about the fact that I'm a young person who's qualified to go to college, but I'm really worried about taking $50,000 a year out in debt and I don't know how I'd pay that back," he continued.

Still, Obama suggested that his willingness to compromise came with some limits, saying broadly that "there's not going to be perfect overlap" between his and Republicans' ideas.

One area over which there will likely be little room for agreement is the role of for-profit colleges in higher education. The Obama administration last week released its final "gainful employment" rule, aimed at clamping down on abuses in the for-profit education industry.

James Kvaal, a top White House domestic policy adviser, on Wednesday brushed off concerns that the future of those regulations was threatened by a Republican-controlled Senate.

Asked about the possibility that a GOP lawmakers would repeal the rule, he said that there was a "very strong case" for the White House to make to Congress over why the rule is important.

"There are a lot of constituents who are affected directly by this rule, and I think there are a lot of constituents who understand the challenge of student loan debt broadly," he said during remarks at the Center for American Progress. "So I feel very good about the case that we can make to Congress that we're doing the right thing."

 

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Ohio Student Group's Halloween Protest on Debt

The Ohio Student Association used Halloween for a protest at Ohio State University designed to illustrate the way debt turns students into the walking dead, or zombies.

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Australian university says raising tuition will lead to scholarships for many more students

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Prominent university says government's proposal to deregulate tuition will allow it to give scholarships to a third of its students; critics say Sydney's plan will help it cream students from other universities.

 

U.S. eases requirements for Parent PLUS loans

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Parents and students with damaged credit histories will have an easier time getting the loans under new regulations. Education Department will publish institution-level PLUS loan default rates. 

CFPB report criticizes private student lenders for lack of repayment options

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An annual consumer bureau report criticizes the private student loan industry for not doing enough to help struggling borrowers. 

Esssay criticizes some colleges for how they use one part of FAFSA

College admissions is already a high-stakes, daunting process. There are so many moving parts students have to deal with: essays, letters of recommendation, financial aid, interviews, standardized testing — not to mention keeping up with high school classes and activities.

So the recent news that some colleges would convolute the process even more by using the “FAFSA position” as a tool without students’ knowledge or consent deeply disappointed and saddened me. The issue is that on the federal financial aid application form, students are asked to list colleges to which they may apply, unaware that some institutions use that information to make admissions or financial aid decisions.

In my previous role as a college counselor for Bottom Line (a college access and success program for first-generation, low-income students), I worked with a cohort of high school students from start to finish in their application process. I was there to answer questions, give responsible advice, help make college accessible, and ease the stress of the process. My students were often worried about making mistakes -- as evidenced by the countless frantic phone calls and emails I would receive -- and now I have to wonder if their biggest mistake was trusting that their applications would be reviewed fairly.

I asked several of the students I worked with what they made of the situation.

For Kimberlee Cruz, a student I counseled in high school and college, having to worry about the FAFSA position would have been a huge concern. “It would have stressed me out, to worry that my fifth choice could have given me terrible aid just because I didn’t list them first. What if I didn’t get into my first choice? Would that mean I would have no options with good aid?”

Financial aid was the most important part of the application process for Cruz, a junior at Worcester State University, as well as the part that was most confusing. “Regardless of the position, you’re interested in the school; otherwise, it wouldn’t be on your FAFSA.”

Most of the students I have worked with wouldn’t think twice about the order they listed colleges on the FAFSA. For some, sure, it was probably in the order of their preference, but for others, maybe the order was alphabetical, geographical, FAFSA code numerical (O.K., probably not that last one, but you get the idea).

And why should they think twice? There’s not any indication on FAFSA that the order matters or that it will be shared.

Daniel Figueiredo, another former student, was shocked to find out that some colleges use information in this manner. “I think it’s completely unethical. To infer something like preference based on a list, it’s sneaky and can really mess up someone’s future -- it shouldn’t be evaluated.”

Figueiredo, a senior at Worcester State, said that he applied to a few reach colleges at the last minute, institutions he wasn’t sure he could get into but wanted to try. “I thought, what the heck, I’ll do it. Maybe I had a chance, but I put them farther down on my FAFSA list since I added them to my list later than some more attainable schools. I did get waitlisted for two of them, and now I’m wondering if the FAFSA position played a role.”

What students should focus on with the FAFSA is having accurate information, having all their colleges added, and meeting all of the priority deadlines. Financial aid can be confusing enough for students and their families, and for many, the weight of their future completely rests on the aid packages that schools offer.

Throwing FAFSA position in the mix is another step for applicants to remember, another potential barrier to access. And I wonder, would an alphabetical or random order even make a difference, or would schools interpret the list as preferential anyway?

Maybe it’s just me, but a college taking its FAFSA position into consideration for admissions and aid decisions seems like a popularity contest. I know that colleges want to fill their classes, that admissions recruiters have goals to meet, that everyone wants the best and the brightest to want to attend their institution. But holding a FAFSA position against a student -- especially since many students don’t realize that something so arbitrary could greatly affect them -- seems in direct opposition to the ultimate goal of getting students to attend and graduate from college.

If FAFSA continues to share this information, colleges engaging in this practice really need to reconsider their position on student access and success. And students thinking about applying to these institutions might want to reconsider as well.

Ali Lincoln is a project director for TVP Communications, a national public relations agency with expertise in higher education.

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More for-profit colleges would fail 90/10 rule if veterans benefits are included, analysis shows

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As lawmakers contemplate change to the federal rule that caps for-profit colleges' receipt of student aid to include veterans benefits, analysis shows that many would have trouble complying. 

Essay questions free community college policies

Several states have explored the possibility of so-called “free community college” programs, which would cover the cost of tuition and fees for recent high school graduates who meet certain other eligibility criteria. Tennessee was the first state to pass such a plan, making first-time, full-time students who file the FAFSA and complete eight hours of community service each semester eligible for two years of tuition and fee waivers. Legislators in Mississippi, Oregon, and Texas have proposed similar plans, although none of those have been adopted at this time.

The most recent plan for free community college comes from the city of Chicago, where Mayor Rahm Emanuel announced that the city would cover up to three years of tuition and fees for eligible graduates of the Chicago Public Schools. In order to be eligible, students must have a 3.0 high school grade-point average, not require remediation in math or English, and file the FAFSA. (It appears that part-time students will be eligible for the program, unlike in the state proposals.) The district estimates that about 3,000 students would qualify for the program out of the roughly 20,000 students who graduate each year.

Who Benefits?

All of these programs operate as last-dollar scholarships, meaning that the city or state makes their contribution — if any — to the student after federal grant aid (primarily the Pell Grant) has already been applied. In Chicago, tuition and fees for a full-time student are approximately $2,536, less than half of the maximum Pell Grant. District officials estimate that 85 percent of students’ tuition and fees will be covered by Pell Grants — meaning that the city’s contribution will be zero in most cases. This contributes to an estimated cost of about $2 million in the first year.

Looking more broadly, these “free college” programs will give very little additional money to students with the greatest financial need. In every state except New Hampshire and South Dakota, the average tuition and fees at community colleges was lower than the maximum Pell Grant of $5,645 in the 2013-14 academic year. Data from the National Postsecondary Student Aid Study (NPSAS), a nationally representative sample of students enrolled in the 2011-12 academic year, show that 38 percent of community college students had their tuition and fees entirely covered by grant aid. An additional 33 percent of students paid less than $1,000 out of pocket for tuition and fees. Eighty-five percent of Pell recipients at community colleges had sufficient grant aid to cover tuition and fees, meaning they would get no additional money from a “free college” program.

Bryce McKibben of the Association of Community College Trustees has written about how Tennessee’s program will mainly benefit students from middle-income and higher-income families. NPSAS data for community college students show that relatively few low-income students nationwide will benefit from these programs, as most of them already have tuition and fees paid for by other sources.

Tuition and Fees Not Covered by Grant Aid at Community Colleges, by Income

Income quartile

$0

$1-$999

$1,000-$2,999

$3,000+

Lowest

68.2

18.6

10.1

3.2

Second

36.6

28.7

26.8

7.9

Third

11.2

36.0

38.9

13.8

Top

8.0

34.3

42.7

15.1

Source: 2011-12 National Postsecondary Student Aid Study

Note: Sample includes dependent students attending community colleges.

Costs Are More Than Tuition and Fees

At community colleges, tuition and fees are a small portion of the total cost of attendance. Students also have to pay for books and other supplies, a place to live, and everyday expenses necessary to live while also being a student. While some argue that living costs shouldn’t be subsidized by financial aid because they are also necessary to live, being able to cover these costs is critical to being successful in college. The “free college” programs do not cover any of the other expenses, meaning that students must turn to loans or self-support in order to finance their education.

Only 2 percent of community college students receiving Pell Grants in the NPSAS have their full cost of attendance met by grant aid. Four in 10 Pell recipients have to cover less than $5,000 in costs, while an additional 37 percent have to cover between $5,000 and $10,000. The median student with a zero expected family contribution has to come up with just over $5,000 to cover estimated living costs — something that the Chicago program and other similar programs do nothing to alleviate.

Defining “College Ready”

Unlike some other last-dollar scholarship programs, Chicago’s program has a substantial merit component. The requirements of a 3.0 high school grade point average and testing into college-level math and English leave out the vast majority of community college students. Ninety-four percent of Chicago Public Schools graduates required remediation in math in 2009, suggesting that very few students are able to qualify for the city’s program. About 40 percent of community college students in the NPSAS had taken at least one remedial course, with slightly higher rates for Pell recipients. This means that other states or cities considering merit components are likely to reduce the potential pool of recipients — and reduce their costs.  

Making grant receipt contingent on placement test scores could potentially have negative effects on students who end up in remediation. Research by Jennie Brand, Fabian Pfeffer, and Sara Goldrick-Rab using Chicago Public Schools data has found that attending community colleges results in a higher bachelor’s-degree completion rate for disadvantaged students, many of whom are unlikely to enroll in college without the option of a community college. Students who expect to get a scholarship under the Chicago program but are then deemed ineligible due to their test score may be more likely to drop out of college due to the disappointment of not getting the award. It is important to note this effect could even exist for students who would get no additional money under the Chicago program — as long as the perception is that the program is giving them money that is actually being provided by the Pell Grant.

How to Improve “Free College” Programs

“Free college” programs do have some positive attributes, in spite of the limitations noted above. Some students from middle-income families will get additional financial aid as a result of the program. But the concept of “free college” could even benefit Pell recipients who are unlikely to see any additional financial aid under the program. Research has shown that making students aware of their financial aid eligibility results in increased college attendance rates, and similar effects could result due to the programs' publicity. For those reasons, it is important that the Chicago and Tennessee programs be rigorously evaluated to see who benefits, and for what groups of students the program passes a cost-effectiveness test.

These programs should also provide some additional financial aid to students whose Pell Grants cover tuition and fees in order to cover living costs. Even a $500 award at the beginning of the semester would help low-income students manage upfront costs like books and rent payments, and could be paid for by slightly reducing awards for students who are not Pell-eligible. The program would still give larger benefits to financially squeezed middle-income families, but students with the greatest financial need would also see some additional money.

It is also important to consider extending the programs to returning adult students, who typically do not qualify for these programs. The median age of community college students is approximately 23, and a program that provides assistance to these students (most of whom have exceptional financial need) could prove to be very beneficial. Finally, it is important to publicize these programs (and their conditions) widely so students and their families know that community college can be an affordable, high-quality educational option.

Robert Kelchen (@rkelchen) is an assistant professor in the department of education leadership, management, and policy at Seton Hall University and blogs at Kelchen on Education. All opinions are his own.

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